StarHub secures RM270m sustainability-linked loan from CIMB
SINGAPORE: StarHub Group’s unit Malaren International Sdn Bhd has entered into a RM270 million sustainability-linked term loan facility agreement with CIMB Bank Bhd.
This marks the group’s first loan in which the interest rate is linked to the achievement of sustainability performance targets.
“As we are driving our business to support the growth and development of new services, we are pleased to underpin our commitment in our sustainability strategy by taking up our very first sustainability-linked loan with CIMB,” chief financial officer of StarHub, Dennis Chia, said in a statement yesterday.
“We look forward to more opportunities to participate in sustainability-linked financing to proactively drive a sustainable business and enhance the performance of the company,” said Chia.
To incentivise environmental transparency and performance, CIMB will grant a rebate against the loan interest based on StarHub’s performance in its annual CDP Climate Change Scores from financial years 2021 to 2023. StarHub will be eligible for interest savings each year if it is able to achieve the pre-agreed annual targets on CDP Climate Change Scores.
CDP, formerly known as the Carbon Disclosure Project, is a leading global benchmark on the management of climaterelated impacts, to assess responders’ progress towards environmental stewardship.
StarHub, a home-grown Singapore provider of communications, information and entertainment services, said sustainability is an integral part of its strategy and operations. Its commitment and transformation to become a more responsible and sustainable business began in 2008.
It has since implemented many sustainable and green practices across the business, including tackling electronic waste (e-waste), reducing energy and water consumption and promoting actions to address climate change while delivering world-class communications, entertainment and digital solutions to consumers as well as corporate and government clients. – Bernama